Qatari lenders strained under the ongoing diplomatic row - The National

Qatari lenders strained under the ongoing diplomatic row  - The National:

"Government deposits have extended a lifeline to Qatari banks, easing some of the damage of deposits outflow in the wake of the diplomatic row with the Arab quartet of Saudi Arabia, the UAE, Bahrain and Egypt.

However, any escalation of the dispute or it continuing over an extended period will increase pressure, affect asset quality and impact the profitability of the lenders.

“The longer the crisis lasts, the more it will weaken investor confidence [in the Qatari banking sector],” BMI, a unit of Fitch Ratings, said in a research note released on November 21. “In turn, this poses risks to banks’ funding and profitability – particularly at a time of structurally lower oil prices and rising interest rates.”"



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